Socisl security is not going broke - Sm

Posted: Jan 8th, 2019 - 4:01 pm

Let us assume that I am the owner of a very popular coffee company called, “Stardust Coffee”. We make excellent lattes! Ok, so, as a benefit to all of my employees, I create my own coupons called “Star Bucks”, which my employees earn on top of their pay. These Star Bucks go into a fund which I created called “The Stardust Coffee Fund”. The fund is a spreadsheet that sits on my iMac in the office. On that spreadsheet, I record the name of the employee and the number of Star Bucks that they’ve earned. If the employee has earned enough Star Bucks, they can use them at lunchtime or whenever to obtain coffee.

Clever, huh?

As the number of Star Bucks earned are recorded, the numbers in the Stardust Coffee Fund increases, and when paid out, the numbers in Stardust Coffee Fund decreases.

Now then, what happens if the numbers recorded in the Stardust Coffee Fund go negative? Does this mean that I cannot afford to continue providing coffee to my employees?

No, of course not. I could always give my employees more Star Bucks so that they could obtain more coffee. Since I am the only issuer of Star Bucks, I don’t even need this silly fund, nor do I need to require my employees to earn a certain amount of Star Bucks. I could just give them enough Star Bucks so they could obtain two coffees per day if I wanted. As long as I do not run out of coffee, everything is just fine.

That is Social Security.

Let us assume that I am the owner of a very popular coffee company called, “Stardust Coffee”. We make excellent lattes! Ok, so, as a benefit to all of my employees, I create my own coupons called “Star Bucks”, which my employees earn on top of their pay. These Star Bucks go into a fund which I created called “The Stardust Coffee Fund”. The fund is a spreadsheet that sits on my iMac in the office. On that spreadsheet, I record the name of the employee and the number of Star Bucks that they’ve earned. If the employee has earned enough Star Bucks, they can use them at lunchtime or whenever to obtain coffee.Clever, huh?As the number of Star Bucks earned are recorded, the numbers in the Stardust Coffee Fund increases, and when paid out, the numbers in Stardust Coffee Fund decreases.Now then, what happens if the numbers recorded in the Stardust Coffee Fund go negative? Does this mean that I cannot afford to continue providing coffee to my employees?No, of course not. I could always give my employees more Star Bucks so that they could obtain more coffee. Since I am the only issuer of Star Bucks, I don’t even need this silly fund, nor do I need to require my employees to earn a certain amount of Star Bucks. I could just give them enough Star Bucks so they could obtain two coffees per day if I wanted. As long as I do not run out of coffee, everything is just fine.That is Social Security.